EUR/AUD Bullish Call Doing The Round

There was a very large buy order go through the EUR/AUD market during early London and a big global macro fund was behind the buying. These flows are seldom one-offs and I’m sure either this player or one of his buddies will be back at this particular ‘well’ in coming days and weeks.

 

EUR/AUD: Fresh air on topside; new technical target at 1.3800

 

Unfortunately I’m not long anymore but I’m sure I will get plenty of opportunities in coming weeks to buy dips. The clean break above 1.3250 should open up the way for a strong bullish move towards weekly highs at 1.3800.

EUR/CAD, EUR/GBP, EUR/JPY are all rallying hard as well.

And regarding the EUR a note from Commerzbank :

German firms see near-term EUR rise in its monthly survey of German corporates' views on the common currency in May. It finds that for the first time in three months, these firms are on average expecting the euro to rally against the dollar over the next quarter. "They are clearly opposing the current market trend of dollar strength," notes Alexandra Bechtel, an analyst at Commerzbank. However, German companies remain skeptical about EUR further ahead. German firms are still negative on the euro on a net basis in May, but by a smaller margin than in April. By contrast, the percentage of corporates expecting the euro to fall over the next year rose in May to a share last seen in February, following Italy's election stalemate and Spain's corruption scandals. EUR/USD at 1.2935.